Estate planning is serious business. Although everyone's plan is different, there are some common mistakes attorneys and judges see all the time.
A single mistake is enough to completely derail a family's plan. The death of a loved one is already tough on everyone, but pursuing litigation may only complicate matters. Therefore, when anyone creates an estate plan, it is critical to watch out for these errors.
Not planning for a future disability
A lot of people only create enough paperwork to determine which assets go to whom after death. However, estate plans can do so much more than that. For example, you can give someone power of attorney over you in the event you suffer from a disability. You may be unable to make financial or medical decisions independently. You want your loved ones to know precisely what you wanted, so they do not have to guess about something so important. You may also want to consider making a living trust. You need to handle all of this now when you are still of sound mind.
Choosing the wrong executor
When you create an estate plan, you need to select an executor who will oversee everything. Many people choose their spouse or one of their children. However, these people may not be best for the job. Most people will find it is better to select an objective third party. They will not have as much of an emotional attachment when you pass away, so they can more effectively divide your assets.
Not meeting with a financial professional
An attorney will help you immensely in creating an estate plan. However, you should also meet with other parties to ensure everything is correct. You should meet with an experienced tax professional so that your loved ones do not pay as much in taxes when they receive their inheritances. These are all simple enough to follow, but avoiding them can result in a lot of frustration down the line.